Income earned in Croatia is subject to a progressive income tax, of dree different brackets.[2]

Annuaw income

Rate

In between 0 HRK and 26,400 HRK

12%

In between 26,400 HRK and 105,600 HRK

25%

In excess of 105,600 HRK

40%

VAT in Croatia is wevied at dree different rates. The standard rate is 25 percent, two reduced rates are 13 and 5 percent appwy on different goods and services.[3] The 13% rate appwy for newspapers, magazines, bread and miwk; books and scientific journaws, hotews and medicines.[4]

Empwoyment Income is subject to sociaw security, at a rate of 15.2% for de empwoyer and 20% for de empwoyee.[5]

Insurance powicy

Totaw

Empwoyee %

Empwoyer %

Pension Fund

15%

15%

-

Capitaw savings

8.00%

5%

-

Heawf

-

-

13.0%

Unempwoyment

1.7%

1.7%

-

Contribution for empwoyees wif disabiwities

0.1%

-

0.10%

Contributions against injury at work

0.50%

-

0.50%

Totaw

35.2%

20.0%

15.2%

Corporate tax is wevied at a rate of 12% for revenue wess dan 3 miwwion kn and 18% for more. Certain expenses are tax deductibwe for businesses incwuding personaw means of transportation, uh-hah-hah-hah. Resident businesses are taxed on worwdwide income, whiwe foreign companies in Croatia are taxed on profits earned in Croatia.[6]